Remy International, Inc. Announces 1st Quarter 2010 Results

PENDLETON, Ind., May 19 /PRNewswire/ -- Remy International, Inc., a leading worldwide manufacturer, remanufacturer, and distributor of heavy duty systems, starters and alternators, locomotive products and hybrid/electric motors, announced today its operating results for the first quarter ended March 31, 2010.  Sales for the first quarter were $260.4 million compared to $212.4 million for the first quarter of 2009.  Earnings before interest, taxes, depreciation, amortization, and restructuring charges (EBITDAR) for the first quarter 2010 were $33.4 million compared to $15.9 million in the first quarter of 2009.  Gross profit less SG&A was $25.8 million in the first quarter of 2010 compared to $8.5 million in the first quarter of 2009. Net income attributable to Remy International in the first quarter 2010 was $9.7 million, compared to 2009's first quarter's loss of $7.9 million.

"Remy's strong first quarter EBITDAR and Net Income results were achieved due to strong light duty sales and beginning recovery in the heavy duty off highway segment. We continued to effectively contain costs so incremental sales are contributing materially to bottom line results," stated John Weber, Remy International President and Chief Executive Officer.

OE sales were up 43% in the first quarter from last year's depressed levels, led by significant increases in light duty motors and alternators.

Hybrid sales were down slightly at 2.3% in the first quarter versus the first quarter of 2009, as our customers' sales for Hybrid products declined. During the first quarter we continued to announce a series of new business wins in Hybrid such as our recent agreement with Aptera.

Remy Power Products unit volume increased 1% versus first quarter 2009.  Remy Power Products continued to gain share in its market place.  We are winning by partnering with winning customers.  

Net Working Capital (accounts receivable plus inventory less accounts payable) in the first quarter 2010 was reduced by $17.8 million from last year's first quarter. Cash Flow before financing was $10.4 million for the first quarter 2010.

"Remy continued to meet its loan covenants for the first quarter of 2010, and expects to be in full compliance with all loan covenants for all of 2010. Our liquidity remains fully sufficient to meet our needs, and we expect it to remain so for the balance of the year," added Weber.

First quarter 2010 results include a reserve for associated costs relating to a recall of certain alternator products sold in our OE and aftermarket business due to a supplier component failure.  A NHTSA notice was filed.

This press announcement contains forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results, including, but not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, and other factors identified in Remy International statements.

A copy of the 1st Quarter 2010 Financial Report is available on the Remy International Website at http://www.remyinc.com under Investor Relations.

Web site: http://www.remyinc.com

SOURCE Remy International, Inc.